Japan To Increase Consumption Tax Despite Impending Recession
The Japanese government had planned to raise the consumption tax from 8% to 10% as of 1st October 2019, however it is widely believed this could be delayed as a result of the current political uncertainty in the country.
The Prime Minister has initially stood by his plans to raise the consumption tax rate despite ongoing speculation he could be forced to postpone this increase through fears of an economic recession. The proposed increase has already been postponed twice in the past five years.
External factors are also contributing to economic uncertainty; the ongoing conflict between China and the US is worrying Japan’s business lenders, uncertainty surrounding the UK leaving the EU and a drop in international investments have contributed to a likely recession.